FX.co ★ Palladium Hits 5-week Low

Palladium futures fell below $1,450 per ounce, hitting a five-week low amid a broader selloff in precious metals. The decline followed an uptick in US inflation, driven by mounting geopolitical tensions and higher energy costs, which reinforced expectations that the Federal Reserve will keep interest rates elevated for an extended period.

In April, producer prices posted their fastest annual increase since 2022, while consumer inflation saw its strongest gain since 2023. This firmer inflation outlook boosted the US dollar and pushed 10-year Treasury yields higher, eroding the appeal of non-yielding assets such as palladium.

Even with the recent pullback, supply conditions remain relatively tight. Ongoing production disruptions in South Africa and persistent uncertainty around Russian exports—still constrained by sanctions and altered trade routes—continue to leave the market highly sensitive to supply-side risks.

Over the past four weeks, palladium has dropped 8.54%. However, prices are still 50.36% higher than they were a year ago.